porsche leasingThere are many Porsche Leasing
options you can come across and it is sometimes difficult to choose the
right one. You must do enough research to find out which Porsche Leasing
option suits your kind of work, business or personal circumstances.

Contract Hire

Contract
hire, contract purchase, leaseback and finance lease are the main types
of Porsche Leasing options available. Contract hire is a kind of long
term rental arrangement which can be opted for by business people and
personal users. This kind of Porsche Leasing is suited best for those
who prefer to pay small payments initially every month, there is no risk
of depreciation or the problem of disposing of the car, for the user.

It
is the finance company which provides the contract hire service, it
buys the car, takes on the risk of any possible depreciation or loss and
takes the responsibility of disposing of the vehicle at the end of the
term of the contract. The contract is between 2 and 5 years, and the
customer has to take a credit check. So you must be reasonably confident
that your credit file is up to scratch. Every customer can have a
tailor made contract to suit his individual needs and VAT registered
business can claim half the VAT charges. Vehicles for pure business use
can claim all the VAT charges. Monthly rentals can also be offset with
profits which are taxable.

Contract Purchase

Contract
purchase is a form of Porsche Leasing opted for by businesses or
organizations. They hire expensive cars and wish to be given the choice
of either handing over the car at the end of the term of the contract,
or to buy the car at the end of the period. This kind of contract does
away with the risk of any depreciation. Here, an initial payment is made
and is followed up by monthly installments. In this form of Porsche
Leasing, the car is shown as an asset in the account books of the
business. At the end of the term of contract, the business can buy the
car with a balloon amount and claim ownership of the car, or it can
return the car and go in for a new contract for another car.

Leaseback

Leaseback
is a form of Porsche Leasing and is used by businesses. Companies which
wish to free the capital generated from the sale of the vehicle at
market value to a finance company, generally go in for this kind of
contract. The finance company then leases back the same vehicle to the
company which sells it, and this is done with VAT in mind. This time
round, the contract option is the contract hire kind.

Finance Lease

Finance
lease is a kind of commercial leasing and is made use of by companies
which lease out a vehicle for a fixed time period, from a finance
company that owns the car. The client has to pay monthly installments
with interest and this covers the costs. When a finance lease is taken,
the company which goes in for the contract, has to pay for the cost of
insurance, taxes and services. Finance leases can be conditional sales,
or a kind of hire purchase. Depreciation and resale risks may be borne
by the customer. All this should be checked before deciding on the right
alternative for yourself or your company.